Empowering economies: The impact of women's workforce participation on Indonesia's economic growth

Abstract

This study examines the impact of female labor force participation, average years of schooling for women, and gross fixed capital formation on economic growth in Indonesia from 1990 to 2022. Regression analysis indicates that female labor participation negatively and significantly affects economic growth in both short and long terms, likely due to increased labor supply without sufficient job creation, leading to unemployment. Average years of schooling for women have a negative and significant impact on long-term economic growth, highlighting the mismatch between education levels and job market demands. Conversely, gross fixed capital formation positively and significantly influences economic growth in both short and long terms, underscoring the importance of capital investment in boosting production. The study recommends that the government focus on creating labor-intensive jobs, enhancing education quality, and promoting continuous investment to support economic growth. Future research should explore additional variables and methods for a more comprehensive analysis.